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HINDCOPPER trade ideas

Hindustan Copper Falling wedge pattern & Bullish kickerFalling wedge pattern ( black lines ) breakout. The falling wedge pattern is interpreted as both a bullish continuation and bullish reversal pattern which gives rise to some confusion in the identification of the pattern. Both scenarios contain different market conditions which must be taken into consideration. The differentiating factor that separates the continuation and reversal pattern is the direction of the trend when the falling wedge appears. A falling wedge is a continuation pattern if it appears in an uptrend and is a reversal pattern when it appears in a downtrend. Here it is appearing in uptrend. Hence continuation pattern. Continuation or (Reversal) Pattern: 1.Identify an uptrend or (downtrend) 2.Link lower highs and lower lows using a trend line. The two lines will slope downwards and converge 3.Look for divergence between price and an oscillator like the RSI or stochastic indicator 4.Oversold signal can be confirmed by other technical tools like oscillators 5.Look for break above resistance for a long entry Key points to remember: 1.Identification of the trend is crucial 2.Both continuation and reversal scenarios are inherently bullish 3.Both patterns present favorable risk to reward ratios as they generally precede big moves Here is how you identify a bullish kicker: 1.The pattern starts with a bearish (red/black) candle 2.The second candle gaps to the upside, and opens above the previous day’s close. It continues straight up and ends as a bullish candlestick. 3.The gap should not be filled by the wick of the second candlestick, but be left untouched. In other words, the candlestick has a tiny or non-existing lower wick. The pattern occurs after a downtrend, it instead might be a sign that the market has gone too far, and is about to revert. Here the bullish kicker becomes a sort of reversal pattern. The first candle in the signal continues with the current trend, moving downward, but then a major event causes the second candle to gap up. The price bursts upward with bullish enthusiasm. Thus, the Bullish Kicker candlestick pattern portrays a strong change in investor opinion. Not only is there a bullish candle following a bearish candle, but the strength of the switch resulted in a gap between the two candles. The Bullish Kicker signal often occurs after a major surprise in the news that is announced before or after market hours. Something drastic has happened, causing a great shift in investor sentiment, and a reversal will inevitably follow. The larger the gap between the two candles, the more significant the signal. Combining chart patterns with other technical indicators wave out any false signal if generated. Therefore adding any one of the other indicators like Volume, Stochastic, RSI, MACD support etc. with chart patterns, one can further enhance the probability of the pattern to happen.
NSE:HINDCOPPEREducation
by varadtambolkar
34
Hinudstan copper, still long way to go.Accumulation: Wyckoff Events PS—preliminary support , where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. SC—selling climax , the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests. AR—automatic rally , which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. ST—secondary test , in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC. Springs or shakeouts usually occur late within a TR and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements: Accumulation Schematic 1 depicts a spring, while Accumulation Schematic 2 shows a TR without a spring. Test —Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on lesser volume. SOS —sign of strength, a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action. LPS —last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term. BU —“back-up”. This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level. Text taken from school.stockcharts.com Note : You'll never get everything as per text book theory. You always need to modify some parts as required. Bookish knowledge and reality is not exact. Probable profit booking zones. Review the charts at each level, book profit accordingly. Targets are set based on my observations of various stocks like NSE:TANLA , BSE:VENKYS , NSE:MASTEK etc. you can check monthly charts and compare it with this chart. Your own analysis is expected before taking potions. Blindly following and entering can land you in trouble. Don't get carried away by targets as they are multibagger type. Analyze at each level and book profit accordingly. Nothing works 100% in live market, you need to act accordingly to the changing circumstances.
NSE:HINDCOPPERLong
by varadtambolkar
10